But they are going to try again with amendments:

Democratic efforts to include a taxpayer-financed “public” health insurance option in the emerging health reform bill fell short in two crucial test votes in the Senate Finance Committee on Tuesday afternoon.
The first proposal, offered by Sen. John D. Rockefeller IV, West Virginia, failed on a 15-8 vote, opposed by all of the committee’s Republicans as well as by Sen. Max Baucus, Montana Democrat who is committee chairman, and fellow Democratic Sens. Kent Conrad of North Dakota, Blanche Lincoln of Arkansas, Thomas R. Carper of Delaware and Bill Nelson of Florida.
A second try on a more limited public-option amendment from Sen. Charles E. Schumer, New York Democrat, designed to attract farm-state Democrats, failed by a closer margin of 13-10, with Mr. Baucus, Mr. Conrad and Mrs. Lincoln joining the Republicans in opposition.